Broadcom cites ‘two strong drivers’ of revenue growth in Q1 earnings report

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on Mar 7, 2024
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  • Broadcom reported its financial results for the first quarter today.
  • Here's what its CEO Hock Tan said in a press release on Thursday.
  • Broadcom stock is now up roughly 35% versus its year-to-date low.

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Broadcom Inc (NASDAQ: AVGO) is trading down in extended hours on Thursday even though it reported market-beating financial results for its first quarter on continued AI demand.

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Broadcom stock down on muted guidance

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The stock is taking a hit primarily because investors are not entirely content with the future guidance. $AVGO reiterated its guidance for $50 billion in revenue in fiscal 2024.

Analysts, in comparison, were at $49.8 billion. Hock Tan – the chief executive of Broadcom Inc said in a press release today:

Our acquisition of VMware is accelerating revenue growth in our infrastructure software segment, as customers deploy VMware Cloud Foundation.

The multinational also announced $5.25 a share of quarterly cash dividend on Thursday. Broadcom stock is now up roughly 35% versus its year-to-date low.

Broadcom Q1 earnings snapshot

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  • Earned $1.33 billion versus the year-ago $3.77 billion
  • Per-share earnings also declined from $8.80 to $2.84
  • Adjusted EPS printed at $10.99 as per the earnings report
  • Revenue climbed 34% year-over-year to $11.96 billion
  • Consensus was $10.42 a share on $11.72 billion in revenue

Broadcom saw its semiconductor solutions revenue pop 4.0% in Q1 while infrastructure software revenue went up a whopping 153%. CEO Tan also said on Thursday:

Strong demand for our networking products in AI data centers, as well as custom AI accelerators from hyperscalers, are driving growth in our semiconductor segment.

Earlier this week, $AVGO unveiled the world’s first 5-nanometre PCIe solutions as Invezz reported here.

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